NU Online News Service, April 10, 2003, 12:33 p.m. EST – AXA S.A., Paris, says it would have reported the equivalent of a net loss of $3 billion for 2002 if it had followed the U.S. Generally Accepted Accounting Principles.

The company reported $995 million in net income on $78 billion in revenue in February, when it released 2002 financial statements prepared in compliance with French accounting rules.

AXA is attributing $2.8 billion of the difference to U.S. rules for recording drops in the value of its stock, mutual fund and real estate investments. The U.S. GAAP rules cut another $1.1 billion from AXA’s net income by changing the way the company records the value of tax savings it hopes to achieve in Japan in the future.

Other large European financial services companies have reported similar differences between their 2002 U.S. GAAP earnings and their 2002 earnings under their home countries’ accounting rules.

The conversions here are based on an exchange rate of $1=1.0481 euros for the 2002 results, and an exchange rate of $1=0.8858 euros for the 2001 results, using figures published by OANDA Corp., New York.